Providence Resources Investors - PVR

Providence Resources Investors - PVR

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Stock Name Stock Symbol Market Stock Type
Providence Resources Plc PVR London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 3.90 08:00:00
Open Price Low Price High Price Close Price Previous Close
3.90 3.90 3.90 3.90 3.90
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hermana3: All eyes on the samboless Fest early doors. Opportunity for Investor Relations guru, Job Langbroek to show us his magic.
raisethestake1: Expecting to get concrete news on drilling plan and funding on July 22nd 11.00am AGM. If this does not materialize we have been fed a load of guff once more. Government lease on sleepys desk so no short term expectations there. Job doing a sterling job as investor relations since he started. He deserves a few share options like the rest in the PVR camp. That will happen too the same day. How many more sleeps 😊
roadster750: Currency article Posted by roar on lse Larry Goodman has upped his stake in Providence Resources. Why has the beef baron revealed his hand? Larry Goodman is a discreet man. He invests quietly, avoids interviews, and most of his businesses are controlled offshore. Now, his holding company has bought a further 2.5% of Providence Resources, which meant he had to disclose his ownership. 7th Jul, 2021 - 3 min read Providence Resources has broken its investors’ hearts. Since it was set up in 1998, it has lost £285 million. The worst part is that investors’ expectations have been continually raised and then dashed, as deal after deal to develop Providence’s oil has fallen through. Why then is Larry Goodman suddenly showing an interest? And why is he doing so in public view? Goodman normally stays out of the limelight. But yesterday Vevan Unlimited Company, a company controlled by Goodman, bought over 2.5 per cent of Providence. The deal pushed Goodman’s holdings in Providence above the three per cent threshold, after which share dealing must be notified to the wider market. Goodman now owns 4.7 per cent of the company. Goodman bought 26 million shares. They traded at a price of 3.6p, for a total of around £950,000. The 26 million shares make up 2.7 per cent of Providence’s share capital. In total, Vevan now owns 4.7 of the company. That makes him the fifth-biggest shareholder. As reported by The Currency in April, Goodman has been building his stake in Providence for the last few months. In April, he spent a little over £300,000 to acquire just over one per cent of the company, though his position was not publicly disclosed at the time. Why is Goodman moving now? Changes at the board level hint that more are coming. Two weeks ago, Pat Plunkett stepped down as Providence’s chairman, to be replaced by James Menton. Menton is the Chair of St Vincent’s Private Hospital, a rival of Goodman’s Blackrock Clinic. Plunkett said: “Following the recent strategic decision by the board to take the management and financing of the Barryroe project in-house, this is an opportune time to hand over to new leadership.” Goodman’s net worth has been estimated at €3.25 billion. So his £950,000 investment in Providence won’t make him much richer. Goodman has timed his investments well recently. In 2018, again via Vevan, he spent €2.3 million buying a 2.1 per cent stake in Independent News and Media (INM), only to sell out last year for €3.1 million when INM was acquired by Mediahuis. He also did well from his €63 million investment in Green REIT, making €4 million when Green REIT was acquired in 2019. If Goodman is buying Providence Shares, who’s selling? The rumour is that SpotOn, the Norwegian company that had acquired 2-3 per cent of Providence as part of the plan to develop the Barryroe field, is the seller. Given that the deal to develop Barryroe collapsed, SpotOn would have little reason to hold the shares.
hermana3: Always good to have Larry onboard. Superb record as PLC investor....
kent21: I suspect someone has BEEFed up their “ steak” to close to 3.85% Serious investors putting their money on the table. The AGM will be interesting. With Jimmy Menton in the chair we will be seeing a culture of less talk, more action and real results. I hope he will build a strong team around him.
terminator101: RangenoResources has been following me around like a long lost puppy (more like creepy stalker) ever since I exposed him and his multiID boiler room crew for sustaining pump and dump operations on RMS and ADME by a combination of mindless ramping and posting fake research. You need a thick to deal with the crews that operate on these boards and they don't like being exposed.Caveat emptor on those shares that attract them. You only have to look at what's happened to ADME (50p to 4p) and RMS (7p to 0.8p) when the crews prey on investors
amran01: Is Alan still getting the funding by September? What is the odds of him nailing it and surprising the market and investors?
raisethestake1: Job Langbrook , Investor relations is apparently up the walls at the moment. He could really do with an assistant or maybe just some assistance so he could learn his new role. Terrible PR here. It must be the case that they have nothing to say. Are we back to the start line.We have a right to know.
roadster750: Thanks to JODO Providence shareholders prepare for bond boost IT WAS reported in the Business Post recently that Providence Resources’ farm-out partner, SpotOn Energy, had approached the Irish exploration company about a potential merger. This was not too surprising as Providence’s chairman, Pat Plunkett, and CEO Alan Linn had previously outsourced the job of finding farm-in partners to SpotOn rather than doing it themselves. The good news for investors is that the expected €50m bond placement at the end of next month could set a fire under the shares. This would not be surprising given that the company is currently valued at about 1% of its potential €5bn share of the profit from any successful development of the Barryroe oilfield. SpotOn injected £0.5m into Providence last year courtesy of two placings and, in response to press speculation about a merger, Linn issued something of a nondenial denial earlier this month: “We are not currently involved in any merger discussions with any party.” He went on to add, however, that “we will continue to work closely with SpotOn Energy to deliver the necessary funding to develop the world-class Barryroe asset”. Linn did not say Providence has not been approached by SpotOn, simply that he is not involved in any merger discussions. Reading between the lines, if SpotOn can deliver the “necessary funding” for the agreed early development programme (EDP), then it might see little purpose in having Providence just sitting there as a sleeping partner. Rather, it would make sense to merge with Providence and run the whole show. At that stage, Linn would have no obvious central role to play despite being on a generous salary. Linn finds himself tied into SpotOn, much like Tony O’Reilly Jnr and John O’Sullivan were to Apec three years ago, which was supposed to come up with $200m funding for a five-well drilling programme, instead failing to pay even the initial $5m. Plunkett eventually pulled the plug. Why Plunkett chose Alan Linn as the new CEO remains something of a mystery. He is a chemical engineer by training, rather than a geologist or geophysicist. While he did work for major operators like Exxon, Lasmo and Cairn, it was not at a really senior level. In 2008, Linn joined Roc Oil as COO and rose to CEO in 2010 but in 2014 Roc Oil lost €31m and was subsequently suspended from the Australian Stock Exchange. Linn then opted to jump ship and became CEO of the distressed African oil and gas company, Afren, which went into administration in July 2015 and was delisted from the London Stock Exchange. In 2017, Linn moved to Third Energy as COO but “following a strategic review of the business, the decision was made to divest the offshore business and focus on the onshore”. Linn ended up as CEO of the offshore business in July 2019 but exited six months later to join Providence in January 2020. Providence has one significant asset – its now 40% stake in the Barryroe oilfield, which has 350 million barrels recoverable and has flowed on oil on test the five times that it was drilled, most recently in 2012. While Linn is right to focus on Barryroe, it is hard to justify the dumping of all Providence’s deep water Atlantic margin licences simply in order to save money. Linn has no experience or background in the Irish offshore resource sector and as a chemical engineer does not have the academic training to fully understand the rather complex Barryroe field. This helps explain the decision to farm out the development of this field to a third party with more knowledge and experience. It was, of course, Plunkett who was in situ as chairman when Providence raised €70m in a share placing back in June 2016 at a price of 16c and then signed off on the disastrous farm-out agreement with the Chinese Apec consortium. A more obvious choice for Plunkett to have picked as CEO is Steve Boldy, the current CEO of Lansdowne Oil & Gas, Providence’s 10% minority partner in the Barryroe consortium. Boldy worked as a petroleum geologist in the Department of Energy and then spent 19 years with Amerada Hess (now Hess Corporation) as its UK and international explorations manager. In 2013 Boldy joined Ramco, which developed the Seven Heads gas field off Co Cork, just above Barryroe, before moving to Lansdowne in 2006 where, for the last 14 years, he has been studying the Barryroe oilfield. Presumably he could have been poached from Lansdowne, where he is on a salary of only €70,000. SpotOn’s own website asks if you are “looking to sell or farmout your off-shore oil and gas field for development?”. The Norwegian entity claims to have “a new approach to cost-effective offshore oil and gas field development”, whatever that means. CONSORTIUM SpotOn boasts of working with “a consortium of world leading service providers”. One of them we now know to be Schlumberger, an American oil service company that works with an array of operators so the tie-in is far from interesting. SpotOn also claims to be working with the Norwegian oil services investment company, Akastor. OTHER PLAYERS SpotOn does have interests in providing well design and drilling project management, reservoir and field management services, as well as having an interest in the Odfjell Drilling company and Awilco Drilling, which owns some semisubmersible rigs. These are all minority investments. SpotOn also notes an association with the Norwegian engineering firm, Aker Solutions, which specialises in low-carbon emission designs, but again works with a lot of other players. The agreement Linn drew up with SpotOn in April last year offered it “exclusivity until October 31, 2020” to assess the potential of the Barryroe field and agree farm-out terms. The key to this, obviously, was funding, which would make it easy to find a service company and drillers to do the job. By the end of October, however, SpotOn had failed to deliver so Linn allowed a further one-month extension but even by then thegoods had not been delivered. Despite this, Linn went ahead and agreed a 50% farm-out deal with SpotOn, which presumably provided evidence that it was close to securing funding. This reduces Providence’s stake in the field from 80% to 40%. What is understood is that Pareto Securities, a Norwegian investment bank, has agreed to lead but not underwrite the raising of a $50m 10-year bond to partfund the project. On foot of this, the big French bank, Société Générale, is considering a $35m 10-year loan and the Norwegian government will provide a $45m export credit guarantee on the basis of using Norwegian drilling and service companies. DEFERRED FEES On top of this, SpotOn says that its consortium partners will defer part of their fees to the tune of $35m. This appears to bring the total inferred funding to the $165m that SpotOn signed up to. What investors need to ensure is that the key initial $50m bond is in place at the end of next month. With oil prices recovering to $60 a barrel, prompted by the rollout of vaccines worldwide and the predicted economic recovery expected to follow, the odds of this bond being put in place have decreased. What is exciting about this is that according to SpotOn’s feasibility study, the estimated breakeven point for Barryroe is $25 a barrel. This means that with 350 million barrels recoverable, the profit on the field could be of the order of $12bn, leaving the value of Providence’s potential profit share here at close to $5bn. Providence shares are currently trading at 7c, which is 99% off the €7 they traded at back in 2012 when the exploration company had just completed its last successful drilling. The current price values Providence at €50m, which is about 1% of its potential profit share from a successful development on Barryroe. This makes Providence shares look like the most underrated share on the market and they are likely to fly on the back of any confirmation that the $50m bond is actually in place.
roadster750: Article posted by zephra on lse. google translated from Norwegian so a bit patchy. Dec 2020 "It is a large field and the estimates suggest that there is a lot of oil there. But you can never be completely sure until you've plunged your cop into the reservoir. That's according to Jan Vatsvåg, chairman and second largest shareholder in the oil company SpotOn Energy. Under the radar, the unknown Stavanger company has negotiated an agreement to buy half of the Barryroe field, located 50 kilometres off the southern coast of Ireland. The field is considered to be one of the largest undeveloped offshore oil and gas fields in Europe. Recoverable resources are estimated at around 400 million barrels, with a great potential for more discoveries with issued reservoir sections. "It is a very interesting field," says Vatsvåg, pointing out that the quality of the oil is good with low viscosity. Going to get money. It is the Irish companies Providence Resources and Landsdowne Oil & Gas that are selling down in the field where SpotOn Energy now becomes operator, provided the deal goes through. A final agreement contingents government approval and that SpotOn secures funding of at least $166 million - around kr1.5 billion - for the development's first phase. The money will be collected in the Norwegian bond market. In this regard, Pareto Securities has been hired as a facilitator. "The plan is to go into the market in the new year," says Vatsvåg. However, the development requires more capital than that. Providence has long tried to raise capital, but it has become increasingly difficult as investors' focus has turned away from oil and gas. Last year, among other things, an attempt with Chinese stakeholders. "The problem is that you need much more capital than can be collected in the market in normal development. In our model, the capital need is significantly less from external investors and bondholders, and they get very good conditions," vatsvåg argues. TO RAISE MONEY: Jan Vatsvåg is chairman and major shareholder of oil company SpotOn Energy, which is about to raise money for a major field development in Ireland. In addition, they are considering a field on the UK continental shelf. Collaboration with giants The way SpotOn Energy will solve the capital challenge is a close cooperation with suppliers. "We have established a new model for field development by joining several of the larger oil service companies in a consortium that takes a large part of the expenditure. When the oil comes up, they get a share of the profits," says the chairman. The consortium that will finance the development of the Barryroe field together with SpotOn are giants Schlumberger, Aker Solutions, AGR, Maersk Drilling, Keppel FELS, and Aibel. "We envisage an early development so that we can start production. Then we can plan further for a major development of the field in the next phase," says Vatsvåg. In addition to its own share, SpotOn Energy will finance Providence and Lansdowne's share of early development through a loan secured with future cash flow from production. When the first commercial barrels of oil are lifted from the field, SpotOn Energy will receive warrants, which give the right to subscribe for 60 million shares in Providence Resources at 0.17 euros per share. On Friday, the exchange rate was 0.05 euros. Early development includes four wells and floating production facilities. These will be linked to a floating oil production vessel (FPSO). The start of the campaign is scheduled for late 2022. "What we have not landed on is which FPSO to use, but we are in negotiations with different companies. Sniffs in British field Barryroe is probably the last major field on the Irish continental shelf to be explored after Ireland last year put an end to further oil and gas exploration. But it's not just the Barryroe field SpotOn Energy is working on, it's also under consideration. "We have made an assessment of the costs of the development and are currently evaluating. We are not quite in the finish, but we are working on it," says Vatsvåg. Bentley, located just east of Shetland, is considered to be the largest undeveloped field on the UK continental shelf. The field is who heleid by Whalsay Energy, which took over when its predecessor went bankrupt in 2017. Since last fall, Whalsay has been looking for a partner. At that time, the company indicated that oil production could start in late 2023, reaching up to 45,000 barrels per day. On the ownership side of SpotOn Energy Holding are a number of investors from Stavanger and Sandnes. The largest shareholder is Alf Ståle Helland, who is also managing director. He owns around 35 per cent, while Vatsvåg holds 25.3 per cent. In total, around 20 shareholders have contributed to the development of the model.
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